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Old 07-07-2017, 10:04 PM
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Sale of former rental property

I purchased a house in 2001. It was a rental through 2006. Since then I have been working on the house and trying to sell it. It finally sold in June of this year (2017). I have not taken any deductions since it was rented in 2006. Can I deduct the expenses (taxes,insurance, etc) since 2006? If so is there a specific place in the IRS code that addresses this?

Thanks,
Greg



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Old 07-07-2017, 11:07 PM
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I purchased a house in 2001. It was a rental through 2006. Since then I have been working on the house and trying to sell it. It finally sold in June of this year (2017). I have not taken any deductions since it was rented in 2006. Can I deduct the expenses (taxes,insurance, etc) since 2006?=======>of course; Money you receive for rent is generally considered taxable in the year you receive it Once you start making mortgage payments, remember that not all of the payment is deductible. Since part of each payment goes toward paying down the principal, this amount is not a deductible expense; the portion paid toward interest is deductible. Your mortgage company will send you a Form 1098 each year showing how much you've paid in interest throughout the year. This is deductible. Also, if a part of your payment includes money that goes into an escrow account to cover taxes and insurance, your mortgage company should report that to you as well. some of the other common expenses you can deduct are:
InsuranceTaxesLawn careTax return preparation fee Losses from causalities (hurricane, earthquake, flood, etc.) or thefts





even if you did not take deprecation, when you sell it you must recapture the unrecaptured sec 1250 on your return as regular income taxed at your regular tax rate of 25% aslongas your marginal tax rate ix 25% or higher;


If so is there a specific place in the IRS code that addresses this?======> I guess you may visit the web site here ; https://www.irs.gov/taxtopics/tc414.html



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